It said operating revenue dropped to RON2.9 billion in 2020 from RON3.1 billion in 2019.
“2020 was marked by the unfolding of an unprecedented sanitary crisis, that abruptly translated into a severe economic crisis. Though economic rebound is expected, its amplitude and timing highly depend on the evolution on the sanitary front and the execution of the relaunch programs. Banks are key actors for the economic resilience and recovery. n this challenging context, BRD acted quickly and efficiently to fully and continuously support its clients, while adapting its organization to ensure business continuity and swiftly implementing actions to mitigate the negative financial impacts,” said Francois Bloch, CEO of BRD Groupe Societe Generale.
BRD Group reported a net profit of RON962.8 million in 2020, down from RON1.49 billion in 2019.
Net interest income decreased moderately by 2.9%, to RON2.08 billion, driven by a lower interest rate environment and a drop in loan production during restrictions.
The group’s operating revenue declined 5.6% on the year, to RON3.08 billion in 2020, and operating expenses dropped considerably, to RON1.58 billion in 2020 from RON1.67 in 2019.
“BRD maintained a strong focus on its client-centric roadmap, showing accelerated digital deliveries and improved value proposition to customers. In particular, the release of “You BRD” sets the ground for our future omnichannel platform. Relying on its solid business model, BRD delivered a resilient financial performance. The planned savings were fully delivered, without compromising on the strategic priority of digital transformation. As a committed actor of the Romanian society, BRD also maintained an open channel to community’s needs. BRD was involved in solidarity actions fighting the pandemic but also reaffirmed its active support to important areas, such as education and culture,” Bloch added.
The quality of the loan book remained solid in 2020, with an NPL ratio of 3%, stable compared with 2019.
The bank’s coverage with provisions of non-performing exposures stood at 75.8% at the end of 2020, compared with 74% at the end of 2019, above market average.
Taking into consideration the Romanian central bank’s recommendation to limit dividend distribution, the board of directors has decided to propose a gross dividend per share of RON0.0749, subject to a favorable vote by the annual general meeting of shareholders on April 22.
BRD Group net loans, including leasing receivables, grew 0.5% on the year in 2020, reflecting the activity rebound in the second half of the year after the significant impact of the lockdown.
Growth in core retail loans (+0.8%) was mainly driven by housing loans (+2.4%), while consumer loans production showed a strong rebound after the drop during the lockdown, growing 37% in the second half versus the first half.
Corporate lending (+1.9%) was fueled by strong SME financing with average and end-of-year outstanding amounts growing by 7.9% and 22%, respectively.
Deposits from customers saw a further consolidation on both retail and corporate segments. Retail deposits exhibited an accelerated growth pace (+7%), driven by larger inflows in individuals’ savings (+6.3%), while corporate deposits grew 4.7%.
The ratio of net loans to deposits stood at 61% at the end of 2020, down by 7 percentage points compared with the end of 2019.